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Blockchain cybersecurity startup Chainalysis inks MoU with Europol

Chainalysis, a cybersecurity startup that taps distributed ledgers to track digital identities, has signed a deal with Europol and closed a $1.6 million seed funding round led by Point Nine Capital.

While blockchains and digital currencies such as Bitcoin have garnered huge interest across industries, they are still dogged by negative headlines because of their attraction to fraudsters and extortionists.

New York-based Chainalysis is promising to tame the Wild West by tracking digital identities on the blockchain. Its software detects suspicious activity in real time and provides investigation tools for law enforcement to tackle cybercrime.

The firm's technology will now be put to use by Europol’s European Cybercrime Centre (EC3) through a collaboration and information sharing Memorandum of Understanding.

Steven Wilson, head, EC3, says: "Chainalysis brings a level of expertise that will be of significant benefit to our Europe-wide investigations. I look forward to developing a rewarding partnership that will make the people and businesses of Europe safer online."

The deal comes soon after Barclays signed for the startup's compliance tools to enable it to interact with businesses that transact on the blockchain while meeting regulatory requirements.